Is Germany backing up its hydrogen ambitions with LNG?

In light of the Ukraine conflict, Germany is exploring alternative energy sources. The Emirate of Qatar is a beacon of hope. Both parties are pressing for collaboration. There have been no firm delivery decisions made yet.

The German government has signed an energy agreement with Qatar in order to gain more independence from Russian gas. The country’s Energy Minister, Saad Sherida Al-Kaabi, and Economics Minister, Robert Habeck (Greens), signed a statement of intent for closer collaboration.

Qatar is supplying Germany with liquefied natural gas (LNG). Green hydrogen, which is produced using power generated from renewable sources, will ‘also’ be pushed. Since the start of Russia’s assault against Ukraine, Germany has made growing attempts to wean itself off of Russian energy supplies.

Build the infrastructure required for LNG imports

Following a meeting with Qatar’s Emir, Sheikh Tamim Bin Hamad Al Thani, German Chancellor Olaf Scholz (SPD) stated that Germany will build the infrastructure required for LNG imports. “This is a huge step forward, and Qatar is an important element of our overall plan.” Several LNG terminals are in the works right now. They might also assist provide liquid gas to European countries without access to the sea, according to Scholz.

Both countries, according to the Chancellor, desire to strengthen their ties. Qatar, according to the Emir, has become a significant investor in Germany, with increased trade activity. Qatar is the largest Middle Eastern investor in the German economy, with commitments at Volkswagen, Deutsche Bank, Siemens Energy, Curevac, and Hapag-Lloyd. Foreign ministers from both nations should meet often in the future, according to Scholz.

Qatar might begin supplying LNG to Germany as early as 2024. “We want our US liquid gas facility Golden Pass in Texas, in which Qatar Energy owns 70%, to be finished by 2024 so that we can send to Germany,” stated Sheikh Mohammed bin Abdulrahman Al Thani “Handelsblatt,” the Gulf State’s Deputy Prime Minister and Foreign Minister. Additional gas quantities will be added later: “Production expansion in our North Dome gas field will be completed in 2026, maybe as early as 2025.” Qatar and Iran jointly own North Dome, the world’s biggest gas field. Qatari gas output will be boosted from 77 to 126 million tons of LNG by 2026 at the latest.

Qatar’s Emir mentioned extending the gas supply in 2026 or 2027 during his news conference with Scholz. “Europe is a really fascinating market.”

According to them, the discussion between Scholz and Sheikh Tamim was also concerning Afghanistan, in addition to energy problems. Scholz commended his guest for playing a vital mediation role in dealing with the extremist Islamist Taliban, as well as aiding the Qatari government in the evacuation of German nationals, Afghan and international partners from Kabul last summer.